4414 Investors following Visa Steel. Share this News with them.
0
Like this story, share it with millions of investors on M3
Sell Visa Steel; target Rs 12: PINC Research
PINC Research has downgraded its recommendation to sell on Visa Steel, with price target of Rs 12. Visa Steel Ltd. (Visa) reported an excellent growth of 116% in net sales to Rs 3.3 Bn, driven primarily by higher sales volumes and buoyancy in realisations across products.
PINC Research has downgraded its recommendation to sell on Visa Steel , with price target of Rs 12, in its report dated November 7, 2008. "Visa Steel Ltd. (Visa) reported an excellent growth of 116% in net sales to Rs 3.3 billion, driven primarily by higher sales volumes and buoyancy in realisations across products. Coupled with the above factors and reduced focus on trading business, OPM expanded by 1,800bps to 26.5%. As a result operating profit rose 578% to Rs 876 million. However, a Rs 388 million mark to market forex loss had its impact on net profits which stood at Rs 201 million (+482%). At the CMP of Rs 20, the stock trades at a P/E of 3.5x and EV/EBDIT of 5.4x its FY10E earnings. Considering the declining steel price scenario, slowdown in ferro chrome demand leading to shut down of the furnace and declining coke prices, we downgrade our recommendation from 'BUY' to 'SELL' with a price target of Rs 12," says PINC's research report.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click on the attachment......
